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Home Dictionary H Homeowners Association Fee (HOA Fee) Homeowner association fees are monthly fees collected by homeowner associations from property owners. These fees are standard for most purchased condominiums, apartments and planned communities. Some single-family home areas also charge HOA fees. HOA fees are used to pay for utilities, maintenance and repair of property. Fees depend on the type of property and services provided and typically range from $200 to $300. 125% Loan
September 25, 2022 A loan at 125% is a mortgage loan equal to 1.25 times the value of the property securing the loan. 2-1 Buydown
September 25, 2022 A 2-1 buyout is a type of financing that lowers the mortgage interest rate for the first two years before it rises to a regular, constant rate. 2/28 Adjustable-Rate Mortgage (2/28 ARM)
September 25, 2022 2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years. 3-2-1 Buydown Mortgage
September 25, 2022 With a 3-2-1 buyout mortgage, the borrower pays a lower interest rate for the first three years in exchange for an upfront payment to the lender. 3/27 Adjustable-Rate Mortgage (ARM)
September 25, 2022 The 3/27 Adjustable Rate Mortgage (ARM) is a 30-year mortgage with a three-year fixed rate period. 5-6 Hybrid Adjustable-Rate Mortgage (5-6 Hybrid ARM)
September 25, 2022 A 5/6 Adjustable Rate Hybrid Mortgage (ARM 5/6 Hybrid) is a fixed rate mortgage for the first five years and then adjusted every six months thereafter. 5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM)
September 25, 2022 Adjustable Rate Hybrid Mortgages (ARM) 5/1 offer an initial fixed rate for five years, after which the interest rate is adjusted annually. 60-Plus Delinquencies
September 25, 2022 An arrears rate of more than 60 is a metric commonly used to measure the number of mortgages that are more than 60 days overdue on monthly payments. 80-10-10 Mortgage
September 25, 2022 An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash. Adjustable-Rate Mortgage (ARM)
September 25, 2022 An adjustable rate mortgage (ARM) is a home loan with an interest rate that may fluctuate from time to time based on a certain benchmark. Adverse Possession
September 25, 2022 Illegal possession is a legal process whereby a person who is not the owner of a piece of land acquires title and ownership of that land after a certain period of time. Appraisal
September 25, 2022 An appraisal is an estimate of the fair market value of a property, business, antique, or even a collectible. Assessed Value
September 25, 2022 An appraised value is the dollar value assigned to a home or other piece of real estate for property tax purposes. Assumable Mortgage
September 25, 2022 A prospective mortgage is an agreement whereby the outstanding mortgage and its terms can be transferred from the current owner to the buyer. Bungalow
September 25, 2022 A bungalow is a type of house or cottage that is usually either a single story or a second, half or partial floor built into a sloping roof. Cash-Out Refinance
September 25, 2022 In a cash refinance, a new mortgage is taken on for more than your previous mortgage balance and the difference is paid to you in cash. Chattel Mortgage
September 25, 2022 A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property. Comparative Market Analysis
September 25, 2022 Comparative Market Analysis (CMA) is a home price assessment used to help sellers set listing prices and help buyers make competitive offers. Conventional Mortgage
September 25, 2022 A conventional mortgage or conventional loan is a homebuyer’s loan that is not offered or secured by a government agency. Deed Of Reconveyance
September 25, 2022 The deed of transfer is issued upon full payment of the mortgage loan. Deed of Release
September 25, 2022 The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid. Down Payment
September 25, 2022 A down payment is money paid up front for a financial transaction, such as buying a house or car. Encroachment
September 25, 2022 Encroachment occurs when a property owner invades his neighbor’s territory by building or expanding structures outside his property. Escrow Agent
September 25, 2022 An escrow agent is a third party, natural or legal person who holds assets or funds prior to their transfer from one party to another. FHA 203(k) Loan
September 25, 2022 An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.